View more on these topics

Sentance says inflation could rise above 5% this year

Monetary Policy Committee external member Andrew Sentance believes CPI inflation could rise above 5 per cent this year.

Giving a speech at the Confederation of British Industry’s annual lunch in Suffolk today, Sentance, who has called for the base rate to be increased since last June, said gradual increases in interest rates would counter inflation and avoid an “abrupt” rise in the future.

His announcement follows news that CPI inflation had jumped to 4.4 per cent in February, its highest level since 2008. In February, Bank of England governor Mervyn King suggested inflation of “somewhere between 4 and 5 per cent” in the coming months.

Sentance said: “We have heard the news today that CPI inflation has risen again – to 4.4 per cent – and it could easily rise to 5 per cent later this year.”

“In this environment, with inflation running very considerably above its target level and set to rise further, failure to take timely monetary policy action risks a more abrupt and destabilising rise in interest rates in the future.”


News and expert analysis straight to your inbox

Sign up


There are 3 comments at the moment, we would love to hear your opinion too.

  1. COULD?

    How divorced from ground zero are these people?

  2. I believe that the bank of England (Excluding Senatance) are doing the right thing. They are in the position to act if needs be without a rebel like Senatance interupting. You do not see instant results when dealing with the mess they have got..

  3. Terry, do you mean “when dealing with the mess they have created”?

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm